Whistler Table Company Manufactures Tables for Schools

question 100

Essay

Whistler Table Company manufactures tables for schools. The current year operating budget is based on sales of 20,000 units at $100 per table. Operating income is anticipated to be $120,000. Budgeted variable costs are $64 per unit while fixed costs total $600,000.
Actual income for the year was $354,000 on actual sales of 21,000 units. Actual variable costs were $60 per unit and fixed costs totaled $570,000.
Required:
Prepare a variance analysis report with both flexible-budget and sales-volume variances.

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Definitions:

Rights

Entitlements or permissions, either granted by law or moral principles, allowing individuals to perform certain actions or to be treated in specific ways.

Holder in Due Course

A legal term describing a person who has acquired a negotiable instrument in good faith for value and without notice of certain defects.

Holder's Actions

Decisions or moves made by the individual or entity that possesses or controls a financial instrument or legal document.

Presentment

A demand for acceptance or payment of a negotiable instrument made upon the maker, acceptor, or drawee by or on behalf of the holder of the instrument.